With rumors that Coke (NYSE:KO) is talking to Aurora Cannabis (TSX:ACB) because of interest in a cannabis-infused beverage and Tilray (NASDAQ:TLRY) going vertical on the U.S. DEA allowing them to import a cannabis product for medical testing, many pot stocks are raging again this week.
Also getting juiced are shares of New Age Beverage Corp. (NASDAQ:NBEV) after the company said it is debuting a new cannabidiol (CBD)-infused beverage portfolio at the North American Convenience Store Show at the Las Vegas Convention Center on October 7-10.
CBD is a non-psychotropic cannabinoid found in cannabis heralded for a number of medicinal benefits, including treating things like inflammation, seizures, post-traumatic stress disorder, cancer and more.
The Denver-based company decided to expand its footprint in the space following an evaluation of the data and science in the emerging market by its New Age Health Sciences division.
The analysis was conducted against the backdrop of growing consumer demand for CBD-infused drinks thanks to ever-increasing acceptance and recognition of CBD for its myriad of potential positive therapeutic effects.
As part of its research, New Age ran a test in its home market of CBD-infused drinks and used the information gained in its newest formulations with respect to flavors, dosage and other factors.
For New Age, the Aurora/Coke speculation couldn't come at a better time as it puts a bright spotlight on the market segment as a large enough opportunity that Coke wants in. According to the Brightfield Group, the global market for CBD will top $22 billion with the next four years.
Addressing this market, New Age says it will be meeting with some of the major retailers in the country at NACS and taking orders on a first come, first serve basis, given anticipated demand.
"We believe we have developed unique consumer insights and accessed superior technology in CBD-infused beverages over the past year, and we are excited to share those insights with key retail partners," commented Zach Ross, Marley Marketing Manager at New Age, adding "[We] intend to launch the most efficacious and safe CBD-infused products for consumers, with the most responsible marketing and education to a segment that has potential to be transformative to healthy functional beverages."
NBEV is one of the top performing stocks on the NASDAQ exchange in Wednesday trading. With just over an hour left in the session, shares are up a whopping 69.5% at $4.78 and strong volume of more than 68.5 million shares.
